Spreading 2s and 10s

Discussion in 'Financial Futures' started by killATwill, Jan 28, 2022.

  1. xandman

    xandman


    Definitely! So many choices and liquidity to boot. I would like to see steepness to do a form of carry trade. There doesn't seem enough juice right now. So, I do understand why you are doing wide steepeners/flatteners.

    If your not familair, read up on the concept of "the turn". There's a big drop of in yield or price in Dec. You may have to price that in. It's not a free lunch/opportunity. I forgot what causes it.

    I am still flip-flopping on where we really are in the cycle. Covid messed up the stats.
     
    Last edited: Jan 28, 2022
    #11     Jan 28, 2022
    killATwill likes this.
  2. Thanks for the recommendation. Will read up!
     
    #12     Jan 28, 2022
  3. #13     Jan 28, 2022
    CannonTrading_Ilan likes this.
  4. xandman

    xandman

    I understand the strip doesn't go out far enough.

    But, that doesn't mean Euro dollars can't house a trade with the same sensitivity to the cash 2-10s. It's all in the structure and size of the trade.

    Think of it as a long 10 ft seesaw. We chop off 2.5 ft off each end. That seesaw will rock back and forth the same way within a 5 ft span around the fulcrum. Btw, I am not saying 1 10 ft seesaw is equal to 2 5 ft seesaws. You gotta google the BPV on seesaws. Haha.
     
    #14     Jan 28, 2022
    killATwill likes this.